1.2 - Business Ownership Flashcards
1
Q
What is a sole trader
A
A business that is owned and managed by one person
2
Q
What is a partnership
A
2 or more people join together in a business to enterprise
3
Q
What is a private limited company
A
A business that cannot publicly advertise its shares for sale
(Also most are owned by family)
4
Q
What is a public limited company
A
They can advertise its shares and can be listed on the Stock Exchange
5
Q
Advantages of being a sole trader
A
- Quick and easy
- You make all the decisions
- You keep all the profits
6
Q
Disadvantages of being a sole trader
A
- can be stressful
- If the business goes wrong, you have unlimited liability (you can lose everything you own)
- Lots of work
7
Q
Advantages of partnerships
A
- Several people are involved. Everyone can contribute money
- Partners can cover for eachother
8
Q
Disadvantages of Partnerships
A
- Partners may have different ideas when coming to problem solving. Lesding to disputes
9
Q
What are stakeholders?
A
Individuals and organisations that are affected by the actions of a business
10
Q
What is Limited liability
A
Protects a business owner’s personal funds from being used to pay business debts
